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It’s the “Moment of Truth” for Bitcoin as it Trades at a Crucial Level

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  • Bitcoin has found some stability within the mid-$11,000 region following its recent dip towards $11,100
  • The cryptocurrency is now consolidating as it struggles to maintain its momentum, with bulls and bears largely reaching an impasse as it hovers at $11,500
  • Analysts are now noting that the benchmark cryptocurrency could be well-positioned to see significant near-term upside if bulls can defend a crucial technical level
  • A failure for it to bounce here, however, could cause it to plunge lower
  • As such, BTC now appears to be trading at a “make or break” level

Bitcoin and the aggregated crypto market have seen some mixed price action throughout the past few days and weeks.

Following the news about the Federal Reserve’s decision to let inflation run above 2% going forward, BTC’s price bounced up to highs of $11,600. This surge was fleeting, however, as the crypto rapidly retraced down to lows of $11,100 shortly after that.

This turbulence struck a blow to the cryptocurrency’s technical strength, but buyers were able to guard against it seeing any further downside.

They have since erased nearly all of the losses that came about as a result of traders fading the Fed news, and BTC is now stable at $11,500.

Analysts are noting that where it trades next will depend largely on how it reacts to one crucial level – making it the “moment of truth” for BTC.

Bitcoin Struggles to Gain Momentum as Consolidation Phase Kicks Off 

At the time of writing, Bitcoin is trading down marginally at its current price of $11,490, which is around the price at which it has been trading throughout the past few days and weeks.

Earlier today bears attempted to gain control of BTC when they pushed it as low as $11,400.

This dip was fleeting, however, as the cryptocurrency quickly rebounded back towards $11,500. From this point on, it has been caught within an extended bout of sideways trading.

Because Bitcoin remains caught within its macro trading range between $11,000 and $12,000, which of these levels is broken first should provide insight into its mid-term trend.

Analyst: It’s Now the Moment of Truth for BTC 

While speaking about the cryptocurrency’s near-term outlook, one analyst explained that it is now the “moment of truth” for Bitcoin, as a failure to bounce here could strike a lethal blow to its technical strength.

“Moment of truth (4h) 1) Broke resistance 2) Retraced 3) Testing resistance as support 4) bounce or doom?”

Image Courtesy of Teddy. Chart via TradingView.

How the cryptocurrency trends in the coming few hours should offer significant insights into its near-term outlook.

Featured image from Unsplash.
Chart and pricing data from TradingView.





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Bitcoin

Traders look for Bitcoin price daily close at $41K to confirm bullish reversal

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Bitcoin started the week with a strong breakout to $40,900, but today bulls are trying to hold Bitcoin price above the $40,000 level. 

As the price broke from the $31,000 to $39,000 range on June 14, traders speculated that setting a daily higher high and a close above $41,000 would set BTC up for a move to $47,000, but a lack of sustained buy volume and the much-discussed possibility of a death cross between the 50- and 200-day moving average are factors that could be keeping traders cautious.

BTC/USDT daily chart. Source: TradingView

According to Simon Peters, an analyst at eToro:

“Bitcoin is at its highest level since May, a notable recovery but the crypto asset has yet to convincingly break through – and most importantly, close above – the $41,000 mark.

While sentiment has improved and futures premiums have recovered after nearly entering backwardation last week, analysts are unable to confirm that the bull trend has resumed.

Peters said:

“We’ve seen the price face resistance earlier in the year at this level when it was trading around what was then an all-time high, and I would really need to see a stronger increase to feel optimistic about the price recovering and possibly pushing onto $50,000 and beyond.”

Sentiment has improved but the market is flat

Deribit Bitcoin options 25% delta skew. Source: laevitas.ch

Regarding the lack of follow-through from Bitcoin’s June 14 pump, Cointelegraph analyst Marcel Pechman shared the above chart and said that while the 25% delta skew is no longer signaling that extreme fear exists in the market. 

Pechman said:

“Arbitrage desks and market markers are currently uncomfortable with Bitcoin’s price as the neutral-to-bearish put options premium is higher. However, the current 7% positive skew is far from the 20% exaggerated fear seen in late May.”

Even though day traders are on the fence about the status of the trend, a number of on-chain metrics, including the Hodler Net Position Change, show that investors still view the recent dip to $30,000 and Bitcoin’s current price at $40,250 as excellent purchasing opportunities.